One Wall Street bank doesn't care that the next iPhone will be delayed

The next iPhone is set to be announced later this year, but according to rumors, it will launch a bit later than normal.

The next iPhone is rumored to have a bezel-less OLED screen that will put it in line with the Samsung Galaxy S8's edgeless AMOLED panel. The next iPhone is expected to launch later than normal in part because Apple has reportedly had trouble incorporating its fingerprint reading technology with the new screen.

Despite the delay, investors are still bullish on the company. Katy Huberty, an analyst at Morgan Stanley, expects lower fourth quarter sales of the iPhone thanks to the delayed launch, but raised her price target by 2.8% to $182 in a recent note.

Demand for the new iPhone is not expected to be lower even with delays, according to Huberty. People will simply upgrade later in the year, which will push the bump from new iPhone sales further into 2018.

Huberty thinks the new iPhone will be huge for Apple. It's the first phone in three years that will have a new form factor which will drive a "supercycle" according to Morgan Stanley. The newest phone is also expected to increase the average sale price of the iPhone, as the flagship model is rumored to be priced above $1,000.

Previous form factors have driven prolonged growth for Apple shares after launch and other analysts aren't considering the supercycle potential for the new iPhone, according to Huberty.

Apple's shares are up 29.44% this year, and have risen around 0.85% after Morgan Stanley's note on Monday. Shares are currently trading at $150.22.